TORONTO, ONTARIO--(Marketwired - Dec. 2, 2014) - Stetson Oil & Gas Ltd. (TSX VENTURE:SSN) provides an update with regards to the Llanos-11 block acquired during the Ronda 2010 bidding process which the company subsequently farmed out to a third party company. Stetson reports that the Colombian regulator has called down the outstanding letters of credit which were posted as a part of the initial exploration work program obligations. A description of the letters of credit is set out in Stetson's most recent annual and interim financial statements and MD&A.
The letters of credit were posted as part of the farm-out agreement whereby an independent company acquired a 90% interest in exchange for funding the obligations associated with the exploration block, including financial obligations. Due to the failure of the partner to meet the required obligations, Stetson terminated the farm-out agreement in October 2013. The partner advanced all of the funds for the letters of credit.
The company does not anticipate any further immediate follow up on this matter and will update shareholders, as necessary, as a part of its continuous disclosure.
Regulatory Statements
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding possible further steps, if any; continuing obligations of Stetson in respect of the Block and regulatory or legal recourse related to the Llanos block. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Stetson, as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; risks associated with operation in foreign jurisdictions; ability to successfully integrate acquired properties; foreign operations risks; and other risks inherent in the oil and gas industry. Although Stetson has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Stetson does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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